Pre-Employment Credit Checks (Long!!!)

[IDrinkaRum]

No, but I'm pretty sure companies have had employees in the past who turned criminal because of their low credit scores. You don't have to actually be handling the money directly to try to circumvent the procedures to get at the money. The hiring companies are trying to protect their assets. I am NOT saying this is right, but that's the way the ball bounces.

As for my husband and I? Everyone and their mother wants to give us credit cards & loans because our credit scores are in the upper 700's. *le sigh* It's pathetic.

[powerboy]

What about $100,000 for a small company?

I think what I said implies that amount also.

[ebonyknight]

I think what I said implies that amount also.

So then can we imply that, that goes for $10000 or a $1000 as well? That's what a secretary or an AA might handle for company "petty cash".

[Boozy]

No, but I'm pretty sure companies have had employees in the past who turned criminal because of their low credit scores.

I hate to harp on one point, but I really feel that this needs to be made clear: People with low credit scores are no more likely to steal than someone with a good credit score.

I realize that this goes against popular belief, but almost every criminology study in the last 20 years has indicated that poor credit does not turn otherwise honest people into criminals. What may be more surprising to people is that even poverty does not tend to turn people to crime. (All bets are off at starvation-level poverty, but this happens rarely in the developed world.)
Crime does tend to be more prevalent in poor neighbourhoods, but poverty itself is not a trigger.

[IDrinkaRum]

I understand that Boozy. However, these corporations, either small or mega large are all run by men in suits who are more interested in keeping their bottom line in large numbers of money. They truly believe that people with low credit scores are thieves and will do anything to steal. Only the people with high credit scores are ethical because they care enough about themselves, the economy (and even their family if they have one) to keep up with the Joneses without going into debt.

I am not saying this is right. I am saying this based on the corporations I have worked for. I am saying this by working closely with the HR people, the Security Personnel (when I was working at the Government Contractor companies), the Office Managers I've known.

Any amount of money be it from petty cash & higher can be tempting to anyone - whatever their credit score/how much money they have in their bank account. But the people doing the hiring, doing the checks just see numbers. And they fall back on the fallacy "low credit score = theif".

[Boozy]

Okay, I see what you're saying now. We actually agree that the practice is wrong, but we both understand why the companies are doing it.

Companies make all sorts of bone-headed decisions based on habit, shaky research, and personal biases. And they'll continue to do so as long as they think it's profitable.

The only solution would be to make it illegal to use FICO scores for any purpose other than making the decision to grant credit.

[powerboy]

The only solution would be to make it illegal to use FICO scores for any purpose other than making the decision to grant credit.

That is exactly what they should be for anyway. Not to be based on getting hired anywhere

[BlaqueKatt]

Fortunately, credit is something that can be repaired, unlike a criminal background.

I'm currently around $15,000 in debt-due to medical bills. Being very sick and not having insurance will do that to you. I don't have any spare money to pay those bills-my credit is shot, there is nothing I can do to repair it, because that amount is two-thirds of my yearly income. I pay what I can, when I can, but I've been unemployed the last two months. Why should a company be allowed to hold a previous illness against me? We're talking 4 years ago-viral meningitis and pneumonia-and $5,000 of that is from the heart-attack symptoms I had back in April caused by a virus, the only hospital my then-current insurance covered was an-hour and a half drive away. My rent, phone bill, electric bill, husband's car insurance are all paid on time-but the medical debt shows on my credit report, and I don't happen to have a spare 15 grand lying around, that should not be taken into account when I'm applying for a job. If it has no bearing on the job I'm doing, or my qualifications why does it matter?

Now there are companies that will test you for nicotine and ask you if you are a smoker. If you are, they won't hire you. As unfair as it may sound, it's their company

And in my state it's illegal.

[ebonyknight]

I'm currently around $15,000 in debt-due to medical bills. Being very sick and not having insurance will do that to you. I don't have any spare money to pay those bills-my credit is shot, there is nothing I can do to repair it, because that amount is two-thirds of my yearly income. I pay what I can, when I can, but I've been unemployed the last two months. Why should a company be allowed to hold a previous illness against me? We're talking 4 years ago-viral meningitis and pneumonia-and $5,000 of that is from the heart-attack symptoms I had back in April caused by a virus, the only hospital my then-current insurance covered was an-hour and a half drive away. My rent, phone bill, electric bill, husband's car insurance are all paid on time-but the medical debt shows on my credit report, and I don't happen to have a spare 15 grand lying around, that should not be taken into account when I'm applying for a job. If it has no bearing on the job I'm doing, or my qualifications why does it matter?

Because, in order to pay off that debt that is haunting you, you may resort to illegal means to repay it. Of course, no one has a crystal ball and no one knows you on a personal level, so unfortunately, a policy is in place to take care of the general problem. Not the specifics.

If you document your situation and let your perspective employer know, perhaps they will make an exception. If they don't, I am not sure they would be a good, understanding employer that we all would like to work for. Again, life ain't fair. My mother was a nurse and the most giving person I (and many people have said the same) ever met. Yet she died of cancer through no fault of her own. While any number of selfish, evil people continue to live healthy lives. Unfortunately, bad things happen to good people.

As far as the smoking ban, I wouldn't bother applying to them. If they are going to want to run my personal life, then they are probably not an employer I would like to work for. Same applies above.

[Kyree]

Where does that leave people like me, who get turned down for everything because I don't have enough credit?


Not even big things like cars, or houses, or other loans. I mean, I have a checking/savings/credit card through my bank. I want to switch to another bank closer to me. They declined me (while managing to tack on two inquiries to my credit report in doing so) because... (exact wording) "You don't have enough lines of credit." I have two credit cards. I guess they want me to pull out a few loans and a sign up for a few of those pre approved credit cards?

I'd really hate to see the effect of having not enough credit or no credit in that situation. It causes me enough headaches without having to worry about it affecting work.

[jedimaster91]

Where does that leave people like me, who get turned down for everything because I don't have enough credit?


Not even big things like cars, or houses, or other loans. I mean, I have a checking/savings/credit card through my bank. I want to switch to another bank closer to me. They declined me (while managing to tack on two inquiries to my credit report in doing so) because... (exact wording) "You don't have enough lines of credit." I have two credit cards. I guess they want me to pull out a few loans and a sign up for a few of those pre approved credit cards?

I ran into the same thing. I couldn't even get a Discover student card because I didn't have any credit. My parents paid my college tuition, so no student loans. Then I got married and inherited my husband's credit and cards. His credit is pretty darn good.